Hello friends! Welcome back to another edition of Ask the Reader! As you all know by now (since I can’t seem to stop talking about it!) - I recently got out of credit card debt.I received my first credit card when I was 18 years old and since then I have always carried a balance. I am now 30 years old. At my highest point, I was owing over $12,000 on 2 cards at an interest rate of 11.99% and 12.99% respectively. You do the math.
The interest I have paid over the years is probably enough to buy a brand new Mercedes-Benz convertible but since I am a serious PF blogger and would never buy a brand new car, never mind luxury convertible, it’s probably a good thing I didn’t have the available cash sitting around in my bank account…right?
Aside from tears I have cried recently thinking of the monster interest I have paid over the years, I also got to reflecting on some of the really stupid things I have done with my credit cards. *insert GMD shame face*
I could seriously list enough examples to write a novel as long as a Lord of the Rings book (LOTR fans holla!) but I won’t bore you with all the disgraceful details of my credit card past. Instead I will only share the DUMBEST boo-boo I have ever made with my Visa…
Drum roll please…
I would take cash advances out on it, usually a few hundred dollars to “lend” to an ex loser boyfriend who was an even bigger financial mess than I was and he always promised he would “pay me back right away.”
Do you think he ever paid me back? Nope.
Do you think I quickly learned my lesson and never lent him money again? Nope. Curse my young foolish generous heart.
Do you think I would ever take out a cash advance on my credit card now even in an “emergency”? Nope. NEVER.
I think we all know that unlike regular purchases made on a credit card where you have 30 days to pay it back before interest accrues, interest on cash advances start immediately! To make matters worse, interest on cash advances are usually higher too. Just don’t do it folks!!!
Alright, now it’s your turn to share your biggest credit card mistake in the comments below. Who is brave enough?